This chapter discusses the use of EU assistance in respect of the possibilities offered by the Regional Operational Programme for the Lower Silesian Voivodship for 2007-2013. In 2000- 2006, the EU assistance related to Lower Silesian regional development has been given through:
− pre-accession programs cofinanced by EU funds: ISPA, Phare (Phare Economic and Social Cohesion, Phare Cross-Border Cooperation), SAPARD;
− Cohesion Fund;
− Integrated Regional Development Operational Programme (IROP) 2004-2006;
− Rural Development Programme financed by the International Bank for Reconstruction and Development;
− Sectoral Operational Programmes 2004-2006; − INTERREG Community Initiative;
A significant part of projects subsidised in years 2000-2006 have not yet been completed. Therefore, it is impossible to make an overall assessment of the use of the UE assistance in Lower Silesia. Such assessment will only be possible at a later time, after all tasks have been completed. At present, it is only possible to partially assess the effectiveness of the projects under implementation.
The analysis of the effectiveness of fund implementation indicates that direct impact can only be observed for major projects. This relates primarily to the projects implemented under ISPA and the Cohesion Fund.
In the field of road transport, the EU financial assistance resulted in the implementation of 2 projects, with a total value of ca. EUR 460 million, involving the construction and upgrade of motorway A-4, the backbone of the region’s transport system. The projects have contributed to enhancing the region’s competitiveness, especially in respect of attracting new investment (LG.Philips development project). Of great importance for the region are also projects related to rail transport. These development projects involve upgrading a section of major rail line E-30 (total value of 2 projects now underway is ca. EUR 250 million), part of the transport corridor linking Germany, Poland and Ukraine. In the nearest future, E-30 should be important not only for the development of Lower Silesia but also the south of Poland. The region also gains measurable benefits from projects related to environmental protection infrastructure. Observable effects of ISPA and the Cohesion Fund tasks, both completed (5 projects) or currently underway (2 projects), are solving water supply and drainage problems linked to water supply and drainage in the region, and especially in Wrocław. The projects will have a favourable environmental impact and will improve the potential of the voivodship’s economic development. It is worth pointing out the Lower Silesian Voivodship is one of the few regions, in which so many ISPA/Cohesion Fund projects, both relating to transport infrastructure and environmental protection, are underway (12 projects that have already been completed or are now underway and 9 projects currently in the pipeline).
Another programme that has important and visible effects is Phare, of which its most important component - Phare CBC was implemented in the Lower Silesia-Saxony and Lower Silesia-Czech Republic borderlands. In case of the Lower Silesia-Saxony programme, due to a high concentration of funds in a relatively small area, important structural problems were adressed. Under the programme, 16 infrastructure projects (with a minimum subsidy amount
of EUR 2 million) have been approved. The implementation of above projects have had a favourable impact on natural environment and produced new locations to be used for development purposes. The continuation of Phare CBC is Interreg III, the EU Community Initiative implemented in the borderland between Poland and Germany/Czech Republic. The area of assistance for the above programmes is much larger and the financial aid available much lower. Due to the fact that majority of projects implemented under the Interreg III were selected in 2005, it is impossible to evaluate their effectiveness yet. Unfortunately, other parts of the voivodship were not eligible for such extensive PHARE pre-accession development assistance. Approval for implementation was granted to only 6 Lower Silesian projects with a subsidy amount of EUR 2 million cofinanced by Phare Economic and Social Cohesion. Due to a large allocation and a number of entities involved, extremely important for Lower Silesia became the implementation of the Integrated Regional Operational Programme (IROP). In terms of the amount of project applications, the region is one of Poland's top five most active voivodships. As of October 2006, 2,100 project applications had been submitted in Lower Silesia, of which 1,331 were formally correct, 1,142 applications were positively evaluated, 753 applications were selected for implementation, and 625 projects reached the stage of signing subsidy contracts. The total amount of the ERDF/ESF subsidies under the contracts exceeded PLN 826 million, which constitutes 93% of the allocation available for the Lower Silesia Voivodship for 2004-2006. This indicates that beneficiaries, especially self- and local governments, are well prepared to absorb EU funding. It is also worth pointing out that the total amount of project applications (ca. PLN 2.5 billion) far exceeded the allocation available to the voivodship (ca. PLN 941 billion). On average, subsidies were granted to almost one in three applicants and fewer than one in two beneficiaries whose applications were positively evaluated. Predictably, the popularity of the Structural Funds’ financial means in the next programming period will continue to grow.
Positive effects of assistance are also observed in the economic sphere, especially in the SME sector. Businesses were eligible to apply for assistance from both the Phare ESC pre- accession programme and the Structural Funds (the IROP, the SOP ICE). The paid out financial assistance, especially under the SOP ICE, contributed to the establishment and development of business support institutions (e.g. the project of Wrocław Technology Park). Projects implemented in this area have significantly improved competitiveness and increased innovativeness of Lower Silesian companies. They have also contributed to the improvement of the situation in the regional labour market. However, the needs in this area also far exceed the available assistance (e.g. of total 670 applications submitted for the Measure 3.4 of the IROP (Micro-enterprises), only 116 were able to receive assistance).
The projects carried out under the IROP and Sectoral Operational Programmes contribute to eliminating developmental imbalances across regions. This is especially the case with the most backward areas which, if deprived of assistance, would become even more socially and economically marginalised. At present stage, it is difficult to assess the impact of the projects on the socio-economic situation of the Lower Silesia region, but, undoubtedly, that they provided useful lessons on how to apply for assistance from the Structural Funds.
Positive changes are evident as well in the sector of agriculture and rural areas. The largest amount of assistance was allocated to investments in farms and rural area infrastructure. The funds helped to start agricultural activity and enabled its diversification., It should be emphasised, however, that due to immense backwardness and needs, the assistance proved to be insufficient and this segment of economy requires further assistance.
In describing the effects of the implemented aid coming from both national and foreign sources, in Lower Silesia it should not be omited the significance of added value. An increase
in pro-investment thinking and pro-development activities can be noticed, especially among businesses and self-government authorities. In the long run it should have a crucial impact on the development of the whole region. In addition, during the implementation of various training projects, mostly among youg people a change in thinking as well as increased activity can be observed. Passive attitudes get rejected, educational and training awareness rises, people develop new skills, there is more mobility and more entrepreneur-like attitudes. The last factor should notably contribute to making the region more competitive and attractive. Summing up, in spite of noticeable effects resulting from the implementation of particular projects, the assistance is highly insufficient relative to the needs. A considerable part of positively evaluated projects submitted under individual programmes could not receive a subsidy due to lack of funds. However, it should be emphasised that the analysis of project applications and projects currently being implemented allowed to identify needs that are most important for the development of both the region and particular entities.
Another positive aspect of the use of pre-accession and the Structural Funds are skills acquired by all beneficiaries related to planning, developing, implementing, managing and accounting of projects. There is no doubt this will be of major importance for further development of various entities in the region, and not only in relation to the use of assistance in the coming years. As for the most important problems related to funding, it should be mentioned overly complicated and bureaucratic application procedures and unclear areas of competence related to the management and implementation of particular programmes. These circumstances led to considerable delays in implementing the programmes, especially delays in releasing payments to beneficiaries. This problem was reported by a significant number of beneficiaries, especially in the economy sector. Moreover, in case of transport infrastructure projects, beneficiaries confronted serious problems related to complicated tender procedures, which often resulted in many appeals and, consequently, prolonged tender processes, therefore considerably delaying project implementation.
Detailed information regarding the implementation of national and foreign assistance related to the regional development of Lower Silesia in 2000-2006 are available at www.rpo.dolnyslask.pl (see the “Ex-ante evaluation” tab).